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Regions Financial on Track to Save Costs, Fee Income a Woe (Revised)
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Regions Financial Corporation (RF - Free Report) remains well poised for the future, supported by cost-control measures, restructuring efforts and higher interest rates. However, muted growth in fee income remains a key concern for the company.
Moreover, the company’s Zacks Consensus Estimate for current-year earnings has remained unchanged over the past 30 days, reflecting that analysts are not very optimistic regarding its earnings growth potential. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Moreover, shares of the company have lost 6.2% over the past two years compared with 11.9% decline recorded by the industry it belongs to.
Going by the fundamentals, while Regions Financial’s expenses increased at a CAGR of 1.9% over the past four years (2014-2017), the company remains on track to reduce expenses by $400 million by next year. The company’s plans of consolidating about 30-40 branches in 2018 will likely help lower costs further.
In an effort to boost its diversified business, Regions Financial has been undertaking restructuring measures. The bank continues to take actions with respect to its Simplify and Grow initiative — including streamlining its structure and refining its branch network while making investments in new technologies, delivery channels, and other growth drivers.
However, the company’s fee income has been witnessing a volatile trend over the last few years mainly due to lower mortgage income and other income. Though it is undertaking initiatives to increase revenues, volatile trend in non-interest income is likely to weigh on its top line.
Stocks to Consider
A few better-ranked stocks from the finance space are mentioned below.
Credit Acceptance Corporation’s (CACC - Free Report) Zacks Consensus Estimate for the current year has increased 3.4% over the past 60 days. Its share price has increased 76.2 over the past two years. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Popular, Inc. (BPOP - Free Report) currently carries a Zacks Rank #2 (Buy). Over the past 60 days, the stock has witnessed an upward earnings estimate revision of 3.8% for the current year. In the past two years, shares of the company have gained 12%.
LPL Financial Holdings Inc.’s (LPLA - Free Report) Zacks Consensus Estimate for the current year has been revised 1.6% upward over the past 60 days. Its shares gained 62.5% in the last 24 months. Currently, it carries a Zacks Rank #2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Regions Financial on Track to Save Costs, Fee Income a Woe (Revised)
Regions Financial Corporation (RF - Free Report) remains well poised for the future, supported by cost-control measures, restructuring efforts and higher interest rates. However, muted growth in fee income remains a key concern for the company.
Moreover, the company’s Zacks Consensus Estimate for current-year earnings has remained unchanged over the past 30 days, reflecting that analysts are not very optimistic regarding its earnings growth potential. Thus, the stock currently carries a Zacks Rank #3 (Hold).
Moreover, shares of the company have lost 6.2% over the past two years compared with 11.9% decline recorded by the industry it belongs to.
Going by the fundamentals, while Regions Financial’s expenses increased at a CAGR of 1.9% over the past four years (2014-2017), the company remains on track to reduce expenses by $400 million by next year. The company’s plans of consolidating about 30-40 branches in 2018 will likely help lower costs further.
In an effort to boost its diversified business, Regions Financial has been undertaking restructuring measures. The bank continues to take actions with respect to its Simplify and Grow initiative — including streamlining its structure and refining its branch network while making investments in new technologies, delivery channels, and other growth drivers.
However, the company’s fee income has been witnessing a volatile trend over the last few years mainly due to lower mortgage income and other income. Though it is undertaking initiatives to increase revenues, volatile trend in non-interest income is likely to weigh on its top line.
Stocks to Consider
A few better-ranked stocks from the finance space are mentioned below.
Credit Acceptance Corporation’s (CACC - Free Report) Zacks Consensus Estimate for the current year has increased 3.4% over the past 60 days. Its share price has increased 76.2 over the past two years. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Popular, Inc. (BPOP - Free Report) currently carries a Zacks Rank #2 (Buy). Over the past 60 days, the stock has witnessed an upward earnings estimate revision of 3.8% for the current year. In the past two years, shares of the company have gained 12%.
LPL Financial Holdings Inc.’s (LPLA - Free Report) Zacks Consensus Estimate for the current year has been revised 1.6% upward over the past 60 days. Its shares gained 62.5% in the last 24 months. Currently, it carries a Zacks Rank #2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>
(We are reissuing this article to correct a mistake. The original article, issued on November 29, 2018, should no longer be relied upon.)